Startup founders usually don't have enough time to read all the essential books in the startup industry. That's why we decided to continue the series of short summaries of the essential books for startup founders. In our opinion, after the "Lean Startup," the second most important is "The Mom Test," and here's why.

To understand why you need to read this book, you need to understand what Customer Development is and why a startup needs it. Customer Development solves a critical problem related to the fact that startup founders love to make products (choosing a design, polishing animations, etc., it's always cool), but at the same time, founders don't like talking to customers of these products.

So, Customer Development is a tool for testing hypotheses (in our case - the hypothesis of demand). However, Customer Development is not just a survey of passers-by on the street, but real science. It teaches you to understand who your client is, what his needs are, and whether you solve these needs or not. Perhaps the client does not need your product at all. To figure it all out, you must learn how to ask questions that the answers to them provide valuable information and do not splurge.

“The Mom Test” is a story about how to create a product that is really needed and how to communicate with customers, who are constantly “flatter” (like all of us). The book will be helpful to anyone who wants to build the best version of their product.

1. Mom test

A conversation with an "early customer" should provide information about his life and views of the world, goals, limitations, and concerns. 

Talk about life, not about the idea. It will help to make your questions better. Ask about specific things in the past, not thoughts about the future.

🔘 Why do you care? (try to understand the user's goals).

🔘 What are the consequences of this problem? (understands the criticality of the problem and the value of solving it. Whether a person is willing to pay money for this).

🔘 Tell us what happened last time (even better - show) (it would be great to observe the user in a real situation solving his problem: how much time it takes, what tools they have used, who they have talked to, and how your product will fit into this).

🔘 How do you solve the problem now? What else did you try to do? What do you use now? How much do you pay for it? What do you like about it and what don't? (in addition to information, you will receive a price guide and a hint about value. If the customer did not look for a product to solve the problem himself, your product is probably not needed for him too. If you can't estimate the price of your future product, ask for a prepayment or pre-order. If they pay, the problem really exists).

🔘 Who will finance the purchase? (important for B2B market).

🔘 Who else do you think I should talk to? (to get other relevant interviewees).

2. How to protect yourself from misleading information

Misleading information: compliments, conversations about the future and other hypothetical things, development ideas.

- Avoid compliments and do not talk about the idea. Collect facts and commitments.

- When users ask for a feature, ask them: "What will it give you?" and "How do you do without it now?".

- Analyze emotional signals (a person is angry, happy, ashamed): "Tell me more", "Why is it so bad?", "Why does it make you so happy?".

- Speak less, listen more.

3. How to ask important questions

- The question is important if the answer can change your business or prove its futility.

- Learn to love bad news. If the client's voice is apathetic, it will save you time and money to develop a product that people do not need.

- First, learn the general overview, then move from the general to the specific, and do not dive into the details without a signal.

- If you know that there is an existing problem, ask: (e.g.) "What important problems do you face in marketing?". If you are unsure about the problem: "What are the important problems facing your business now?".

- Questions like "How important is this problem for you?": how serious are you about this project, do you make money on it, have you tried to earn more, how much time do you spend on it each week, what did you do to improve the situation.

- Market risk: does the problem exist? Product risk: will the product solve the problem?

- Plan ahead: what three important answers you want from customers. It will make it easier to pass the "Mom test". If there are several categories of clients, then the groups of three questions are also different.

4. Meetings

Informal meetings are best for getting to know clients' problems. For example, you can go to a thematic conference and talk to a dozen people without making an appointment. Chances are they won't even realize you've interviewed them.

10-15 minutes is enough for the first conversation about problems. 

5. Commitments

The meeting can be successful or fail. There are no "regular" meetings. A successful meeting should end with a commitment from the client (time / reputation / money).

- Commitment with time: agreed on the next meeting, will answer the layouts by a certain date, test the product in practice.

- Commitment with reputation: he will introduce you to a colleague or boss, public recommendation, review on a website.

- Commitment with money: prepayment, pre-order, or protocol of intent (B2B option).

- The more resources the client agrees to invest - the more trust in his words.

- You may be asked about the next steps - work out the answers in advance.

- The desire to test from the B2B segment is a good sign (willing to spend time of their employees). But for B2C - it means nothing.

- The client does not want to make a commitment - great, he is not yours, or there is no problem. Go on.

- Look for "crazy" customers who react emotionally and are ready to try even your raw early-stage solution. It means that they have already faced the problem, they have this problem, or they have already tried to make their own solution for this problem. Such clients will be your evangelists.

6. How to find interlocutors

- The easiest way to switch from "cold" contacts to "warm" - ask for advice from the "cold" contacts. 

- You need a reason to ask a "cold" contact to talk. For example: "I’m doing research about this topic, could you help me?". 

- Organize a thematic event for clients - you will gain trust and quick access to information.

- Launch an educational thing (conference, seminar, blog, consultation). It will help you finalize the idea and get customer contacts.

- The Six degrees of separation theory (aka the six handshakes rule) works. Just give it a try.

- Industry consultants are a source of "warm" contacts. Try to connect with them and ask for recommendations/intros. Show that you know what you need, help will be valuable, and you will not waste their time:

a) I am an entrepreneur who wants to solve an industry's problem. Say no more about the idea.

b) I want to talk to you about the problem. I will not sell anything because I have nothing.

c) I will tell you about the questions I am looking for answers to.

d) I respect you because you are an expert, and I really need help from a person like you.

e) Please, help.

- Live meetings are the best format. In the case of Skype conversations, you should be more formal, not to give the impression of wasting the time of interlocutors.

- Keep meeting people while you get new information. If 5 people say the same things - great, you have focused on a segment. If 10 people say different things, try to segment them (their needs).

7. How to find your customers

If there are too many companies in the industry and they are diverse, you need to talk to an industry expert - to get a lot of information to choose your future vector.

Ask a broad segment: which of these people wants me to implement the idea? Everyone in the group wants to buy and use the product, why do they want it? Everyone has a reason, but what are the additional reasons? What other groups can have the same reasons? 

These questions will help you segment the customer base.

Criteria for choosing people:

• Availability (easy to set up a communication).

• Profitability (who can bring max. income).

• Efficiency (who will help grow the business).

The right customer segments are formed on the "WHO - WHERE" principle. If you do not know where to look for customers, continue to divide a segment into subgroups.

8. How to make it work

Don't be a bottleneck in communicating with customers. Let other team members communicate as well. Let everyone record the results of the meetings to discuss together.

Preparation: make a list of the three most important questions that will clarify everything for you. Also, before the meeting, sit down and write the answer to the question: "What do you think worries about the future interlocutor and what he wants?".

Two questions in the preparatory phase for finding implicit risks: "If a business fails, what is the cause?" and "What does it take for a business to succeed?".

After the conversation, try to analyze and rephrase the three important questions and clarify the idea if necessary.

Take notes. Quotes can be used for marketing messages (in the words of customers themselves). Write down customers' emotions.

You can record the conversation on a dictaphone (but ask for permission from your interlocutor).

SUMMARY

Here are the main points that can be highlighted:

• It is much more productive to communicate in an informal conversation.

• In the early stages, information is much more important than sales.

• Talk to people about their lives, not about your idea.

• If after the meeting about the product it is not clear what will follow, then the meeting was in vain.

Why did we make this short book overview?

Quite often, startup founders don't read this essential book. Our overview was done specially for them, keeping the key points to explain the customer development approach in 15-min-read article.

We at molfar.io are Lean Startup evangelists. We help clients research market, build prototype/MVP, test market, find product/market fit. The main idea — building not six months, but six weeks and ship a product to customers asap. And already working with first clients, and doing initial marketing — will give you a real vision of the situation and market outlook.

This is what makes traditional outsourcing difficult in the early days of a startup. That's why we made molfar.io to help entrepreneurs build in the right way. With the right team.

Drop us a line with your idea, and we will offer a personalized solution for your product. It’s completely free.